International Project Management Commission & The American Academy of Project Management

IPMC International Project Management Commission Handbook for Managers & Executives International Project Management Commission & The American Academy of Project Management 1

AAPM Board Certifications CIPM Certified International Project Manager MPM Master Project Manager PME Project Manager E-Business Example: Johann Menzhausen, MPM, MBA Many people have a entry level Project Management qualification; however, The IPMC and AAPM are offering the Project Management Credentials for those who have a college degree or management experience. Whether you want to keep you present job or obtain a better one, the IPMC Global and AAPM Global are working to recognize the new leaders in Project Management. All Rights Reserved 1996-2006 2

Mission: The IPMC International Project Management Commission provides standards for Board Certification in the areas of Graduate Project Management Knowledge and Methodology. The AAPM under the authority of the IMPC provides executive training worldwide through registered, sanctioned and accredited Executive Training and Alliance programs. Rational: As there had not been a graduate professional project manager organization specifically for Executives, MBAs, Managers of Teams, PhDs and accredited degree holders, The AAPM has met this need and become the organization of choice for highly educated individuals or industry experts because AAPM requires an accredited college degree or equivalent for membership and certification. The AAPM receives its license, sanction and authority from the IPMC International Project Management Commission. 3

Project Management - Certification Requirements www.certifiedprojectmanager.org The AAPM Executive Designation Programs provide the assurance that the holder has met the suggested criteria for graduate credentials set out in the Ibanez US Supreme Court Decision. Further, the IPMC and AAPM board certification requires meeting 6 different levels of global criteria including ethics and our global body of standards which are the 1st Standards specifically based on the documented methodology used by government agencies and departments. Acceptance into the AAPM is a high distinction and requires the holder to possess a graduate level portfolio of skills and knowledge. Acceptance statistics are not high, and the designation when achieved is a high honor strictly for accredited degree holders or individuals with equivalent backgrounds. 6 Graduate Level Requirements: IPMC Commission Sanctioned Training College Education or Equivalent Successful Assessment or Testing Abiding by the IPMC Ethics Agreement Project Management Experience Sanctioned IPMC Continuing Education After completing the training with an approved provider and successfully completing all membership criteria for AAPM certification, the training provider can then forward the nomination to the IPMC Board of Standards for Processing and Registration for MPM, CIPM or PME Certifications 4

Table of Contents AAPM IPMC Project Management Handbook for Managers & Executives... 1 Mission:... 3 Project Management - Certification Requirements... 4 6 Graduate Level Requirements:... 4 IPMC... 6 Goals of Executive Project Management... 6 The Essence of the IPMC Methodology... 6 Project Management Gains Control Over the following... 7 IPMC 12 Steps to Project Management and Project Management Best Practices... 9 Expanded list of 12 Steps to the Best Practices of Executive Project Management... 10 1. Define project objectives, scope, and outputs... 10 2. Define the activities and life-cycle approach... 11 3. Estimate planning parameters... 13 4. Estimate project resource requirements... 15 5. Establish schedules... 18 Gantt Chart... 20 6. Establish and maintain plans... 20 7. Establish Commitment... 23 8. Organize to meet project objectives... 25 9. Direct the project... 27 10. Monitor project performance... 28 11. Review and analyze project performance... 29 12. Take corrective action... 31 Organizational Management... 32 Project Sponsor / Business Sponsor... 33 Project Manager Oversight List... 34 Decision Sciences, Tools, Methods, and Computations... 35 PERT Program Evaluation Review Technique or CPM... 36 Summary of PM Case Studies... 42 Glossary of Project Management Terms... 56 - A -... 56 - B -... 56 - C -... 57 - D -... 60 - E -... 61 - F -... 63 - G -... 64 - H -... 64 - I -... 64 - K -... 65 - L -... 65 - M -... 65 - N -... 66 - O -... 67 - P -... 67 - Q -... 71 - R -... 72 - S -... 73 - T -... 75 - U -... 76 - V -... 76 - W -... 76 - Z -... 76 5

IPMC Commission - Purposes of Project Management The purpose of Executive Project Management is to ensure the project achieves its goals & objectives, by planning, directing, tracking, and controlling, and improving the activities necessary for development and delivery of required products and services. The IPMC Project Management Methodology involves developing plans and maintaining them throughout the project life cycle. Estimates are established and maintained regarding cost, schedule, size of work products, and critical technical parameters. Commitments to project objectives and plans are established and maintained throughout the project. Project participants and stakeholders are identified and organized to meet project objectives. As the project is executed, the project and performance are monitored and tracked in accordance with the plan. Corrective actions are taken as needed to ensure the project will meet its objectives. Continuous improvement is enhanced at all levels. Goals of Executive Project Management 1. Projects are established, maintained, and executed to provide required products and services that reflect customer and stakeholder needs. 2. Estimates of the project s planning parameters are established and maintained to support resource estimates. 3. Commitments related to the project are established and maintained. 4. Progress of the project is evaluated against its plans. 5. Corrective actions are taken when appropriate and managed to closure. The Essence of the IPMC Methodology Project management methods are used to establish and evolve project plans, to assess actual achievement and progress against the plans, and to control execution of the project to successful conclusion. The resources applied to project management should be scaled according to the size and complexity of the project. Stakeholders should be involved in project planning to ensure every participant understands what resources are required and commits to providing them when needed. Examples of small projects are typically found in research or infrastructure efforts. The determination and continuous adjustment of the appropriate effort and scope for management of a project is an appropriate activity of Project Management. Coordination and commitment among affected groups and individuals (stakeholders) is critical to successful development and execution of plans. The detail and formality with which Project Management steps are applied should be adjusted according to the size, criticality, complexity, and risk of projects. Some level of disciplined project management is appropriate for the smallest of projects. Project Management methods and steps are applicable to all manner of projects, including planning, new product or service design and development, production, operations, maintenance, product or services evaluation, and support. Project Management applies to managing a business unit or a service organization. The project manager is ultimately responsible to the customer. 6

Project Management Gains Control Over the following TIME - The amount of time required to complete the project. Typically broken down for analytical purposes into the time required to complete the components of the project. COST - Calculated from the time variable. Cost to develop an internal project is time multiplied by the cost of the team members involved. QUALITY - The amount of time put into individual tasks determines the overall quality of the project. SCOPE - Requirements specified for the end result. The overall definition of what the project is supposed to accomplish, and a specific description of what the end result should be or accomplish. RISK - Potential points of failure. Most risks or potential failures can be overcome or resolved, given enough time and resources. 7

Project Management is composed of several different types of activities such as: Planning the work Assessing risk Estimating resources Organizing the work Acquiring human and material resources Assigning tasks Directing activities Controlling project execution Reporting progress Analyzing the results based on the facts achieved 8

IPMC 12 Steps to Project Management and Project Management Best Practices 1. Define project objectives, scope, and outputs: Define project objectives, scope, and the work products and services that are to be provided by the project. 2. Define the activities and life-cycle approach: Define the activities needed to achieve project outputs and the life-cycle approach that will be used. 3. Estimate planning parameters: Estimate and document the work product and task planning parameters that provide a basis for resource estimates. 4. Estimate project resource requirements: Estimate the project effort, cost, and other resource requirements. 5. Establish schedules: Develop management and technical schedules for the project. 6. Establish and maintain plans: Establish and maintain a complete set of plans for providing the products and services throughout the project life cycle. 7. Establish commitment: Establish and maintain commitment of affected groups and individuals to project objectives and plans, and commitment of resources as identified in the plan. 8. Organize to meet project objectives: Identify individuals or teams that will be assigned the resources and responsibilities for meeting project objectives. 9. Direct the project: Communicate project plans, direction, corrective actions, and status, and coordinate project activities. 10. Monitor Project Performance: Monitor and track project activities and results against plans. 11. Review and Analyze Project Performance: Conduct formal and informal reviews of project performance and analyze variances from plans. 12. Take Corrective Action: Take corrective actions to address problems. 9

Expanded list of 12 Steps to the Best Practices of Executive Project Management 1. Define project objectives, scope, and outputs Define project objectives, scope, and the work products and services that are to be provided by the project. Description Determine project objectives and measures that will be used to evaluate performance. Identify project constraints, and the scope of the project endeavor. Confirm the customers for the products and services that the project will deliver. Identify and define the products and services that will constitute the deliverable outputs of the project. Work product and service definition includes the characteristics and requirements of work products and the criteria by which they will be evaluated. Work product requirements flow from or trace to the product and service requirements established as inputs to the project (i.e., outputs of Requirements. A project may have been initiated based on a statement of need, and more precise project requirements may be a project deliverable. Identify interim (nondeliverable) work products and their requirements. Typical Work Products project objectives, scope, and constraints project performance measures deliverables work products, and services characteristics, requirements, and evaluation criteria for products and services - non-deliverable work products and their requirements (deliverables are inputs) lists of project information items and categories of information to be managed list of customers key technical parameters Notes Examples and guides for work product definition (e.g., requirement and design document templates) can be found in industry standards on engineering and project management. 10

Additional Practice Guidance Review customer contracts and statements of work to identify work products and activities. Correlate work products and deliverables with identified activities. Review orders, policies, and regulations. Identify the project objectives and constraints in terms of quality, cost, time and stakeholder satisfaction. Identify each objective with a level of detail that permits selection, tailoring, and implementation of the appropriate processes and activities. Define the project scope based on the stages in the whole system life cycle. Confirm that the project includes all the relevant activities required to satisfy the decision criteria and complete the project successfully. 2. Define the activities and life-cycle approach Define the activities needed to achieve project outputs, and the life-cycle approach that will be used. Description This practice identifies the activities that will be carried out. Project activities include management, technical, and support activities that form the basis for providing the required products or services. Management activities include activities for continual assessment of plan execution and application of appropriate corrective actions and replanning. Support activities may pertain to configuration management, information management, quality assurance, training, measurement, or establishment of facilities. Because of the potentially large number of activities that need to be planned, an organized and disciplined approach should be followed for activity identification. This practice also structures those activities into life-cycle phases that will be used by the project to provide the required products or services. Considerations in selecting the project life cycle are whether the product or service is/was (already performed), the degree of risk (technical, cost, and schedule), and the project size and duration. Determination of the life-cycle approach considers management issues such as in-house development or outsourcing, and the use of non-developmental items. Typical life cycle models include waterfall, evolutionary spiral, and incremental. The documented management, technical, and support activities provide the basis for plans for the project and for a schedule of project activities. 11

Typical Work Products work breakdown structure lists of identified activities activity descriptions product and service evaluation tasks for development of needed support plans, such as configuration management, quality assurance, and verification plans tasks for integration and life-cycle management of non-developmental items selected project life cycle model selected technical process project phases project commitment decision points criteria for continuing into subsequent phases cycles and phases of operation maintenance cycles Notes Sources for identification of project activities include work product hierarchies and activity lists from other projects. Historical data from similar projects, where available, can be used as a reference in developing the list of activities in order to gain confidence that the list is complete. Methods such as the Delphi method, whereby peer-level experts are used to add activities and refine the list may also be helpful. The project s life-cycle phases should include planned periods for evaluation and decision making. These periods provide for logical decision points that allow relatively efficient project course corrections and appropriate decision and analysis regarding significant commitment of future resources. The technical plan developed in Establish and Maintain Plans will include process activities, inputs, outputs, sequences, and quality measures that are tied to the increments in the identified lifecycle model. Additional Practice Guidance Review historical records for similar projects to aid in identifying all the required activities. Consult with experts to identify activities. Conduct peer reviews and brainstorming sessions to identify activities. Compare the list of project activities with the requirements to aid in maintaining consistency between plans and requirements. Evaluate alternative life-cycle models against established selection criteria. Establish decision criteria for continuing into subsequent phases. Develop alternative courses of action for subsequent phases. 12

3. Estimate planning parameters Estimate and document the work product and task planning parameters that provide a basis for resource estimates. Description Determination of justifiable planning parameters (e.g., size, scope, and complexity) is a prerequisite for estimating the project effort hours, cost, and schedule. The project's scope and size is dependent on the technical approach and can be estimated by decomposing the conceptual product or service into component elements that are similar to those of other projects. Size estimates can then be adjusted for factors such as differences in complexity or other parameters throughout the life cycle of the project. Historical sources and models calibrated to historical experiences often provide information for initial size estimates. Initial estimates can be refined as more information on the current project becomes available. Planning parameters should be documented and their validity tracked so they can be refined to support re-planning or planning for other projects. Typical Work Products required skill level of staff maximum number of vessels per hour per route average/maximum number of service requests per week (if not specified by customer) average time to respond to a service request average/maximum number of change requests per week (if not specified by customer) average and maximum number of hospital patients per week number of functions, inputs and outputs, data volume number and frequency of user interactions number and complexity of interfaces number of technical risk items number of source lines of code or function points computer resources number of cards of electronics number of cubic yards of material to be moved relative complexity of work products and tasks planning parameter rationale 13

Notes A considerable amount of project data, including scope, requirements, and material items must be identified and evaluated prior to estimating cost, schedule, and material needs. Checklists and historical data from other projects can be used to identify cost items that may otherwise be overlooked. Variance reports and lessons-learned documents are typically good sources of this type of information. Planning parameters are dependent on the technical approach, i.e., the top-level strategy for development of the products. Determination of the technical approach may require a high-level iteration of the architecture and design process for the product or service. In the case of products it may include decisions on architectural features, such as distributed or client server; state-ofthe-art or established technologies to be applied, such as robotics, composite materials, or artificial intelligence; and breadth of the functionality expected in the final products, such as safety, security, and ergonomics. In the case of services, the technical approach may include such factors as which service element(s) will interact with customers, how customer service issues will be processed and resolved, and how premium services will be priced and marketed. Estimates are incorporated into the plans and are maintained throughout the full life cycle. Additional Practice Guidance Base planning parameters on the identified tasks, products, and services and on the technical approach. Use established historical data or models to determine the planning parameters. Document the basis and rationale for planning parameters for use in maintaining plans. 14

Organize and AcquireStaff Policy and Practice Team (Steering Committee) Kristen Duus OIS Oversight Maureen Casterline Business Sponsor Debra Herrli Project Manager (100%) Bryan Nealy System Architecture Team Lead (50%) Tina Seshadri Technical Resource(as needed) Pete Hale Application Development Team Lead (100%) 4 Business Analysts 1 Contract Systems Integration/ Database Developer 3 Contract Developers 4. Estimate project resource requirements Estimate the project effort, cost, and other resource requirements. Description Estimates of effort hours and cost are determined by applying labor and cost estimation methods to the planning parameters and the identified tasks, work products, and services with consideration to schedule and other constraints. Historical parameters or cost models calibrated to historical data are employed to estimate labor costs based on job complexity, tools, available skills and experience, schedules, and direct and overhead rates for similar projects. Estimation parameters and models should be based on measurement data and available from an organizational repository. Other resource requirements, including special skills and knowledge, are determined by reviewing the project requirements and the technical approach. 15

A detailed estimate of project costs, including life-cycle support costs is essential to good project management. Estimates of project costs are made by determining the labor costs, material costs, and subcontractor costs expected for the project s planned activities and the identified scope of the system to be built. Both direct costs and indirect costs (such as the cost of infrastructure, work environment, tools, training, special test and support items) are included. Appropriate reserves are established, based on identified risks. Estimates are independently reviewed. Typical Work Products total labor hours by skill level and schedule total labor cost by skill level and schedule cost of material by item, vendor, and schedule cost of subcontracts by vendor and schedule identification of skills and knowledge not commonly available cost of acquisition cost of tools cost of training life cycle support costs supporting rationale Notes A considerable amount of project data such as scope, schedule, planning parameters, and material items must be collected prior to estimating costs. Checklists and historical data from other projects can be used to identify cost items that may otherwise be overlooked. Variance reports and lessons-learned documents are typically good sources of this type of information. Estimates may be derived from historical sources, calibrated models, Delphi methods, or other ways. Estimates are incorporated with the plans and maintained throughout the full life cycle. Additional Practice Guidance Use checklists and lessons learned from other programs to assure that all costs are determined. Include supporting infrastructure needs when estimating schedule and cost. Maintain a repository of costing models and historical data to support re-planning and planning for future projects. Confirm that effort and cost estimates are based on credible prediction factors (rationale) that take into account work product size and complexity, requirements, risk, technical feasibility, security issues, precedence, historical performance, and availability of personnel skill. Examine the project schedule and identify the types of resources required at each point in time. List resources that are not easily obtainable. Cross check and augment this list by identifying skills that are required to synthesize the system and work products. 16

Estimate Resource Costs Develop cost estimates for: internal & external labor (hrs,rates) materials supplies contracts and legal costs special costs fluctuating costs i.e. steel refined during the course of the project, definitive just prior to construction Estimate 17

Build Budget and Spending Plan Budgeting involves assigning the cost estimates to all the tasks creating a cost baseline. 5. Establish schedules Develop management and technical schedules for the project. Description Coordinated schedules, at an appropriate level of detail, are needed for all project activities including work product and service development, formal and informal management and technical evaluations, support functions, and acquisition of materials, skills, knowledge, tools, and facilities. Schedules are based on verifiable effort models or data for identified tasks, and must allow for task interdependencies and the availability of procured items. Schedules should include slack time appropriate for identified risks. All affected parties must review and commit to schedules. Typical Work Products activity charts PERT diagrams (See PERT in Table of Contents) project schedules milestone charts technical schedules critical paths schedule dependencies 18

Notes The determination of schedules interacts strongly with the other project management practices. Scheduled activities are organized within the lifecycle phases and must account for all identified activities and work products of the project master plan and supporting plans. Management of schedule item dependencies and reserves (e.g., slack time) are coordinated with identified risks and risk mitigation activities. Milestones for contractor product and service delivery often merit special attention due to the increased risk (factors outside direct control of the project). Schedule events should be included for monitoring the status of externally acquired products and services. For example, if the project is critically dependent on training services (e.g., training on a specific type of equipment to support its maintenance service) it may be advisable to add milestones to check the status of the training availability and/or its procurement status. On complex projects it may be advantageous to define near-term activities more precisely than activities that start later in the project ("rolling wave approach"). Schedules should be evaluated against labor profiles in order to level peaks and valleys in labor needs. Additional Practice Guidance Identify events and accomplishments that affect achievement of schedule milestones. Schedule reviews with a frequency that supports effective and efficient corrective action. Schedule slack time to allow for corrective action prior to the start of subsequent tasks. Identify and evaluate risks associated with meeting schedule milestones. 19

Gantt Chart T ask Name Initiate Product Description & Benefits Charter Project Proposal Approved Plan Scope Statement Work Plan Contract/Procurement Plan QA Plan Risk Plan Project Plans Approved Execute Requirements Analysis Design Coding Testing Maintenance Controls Status Reporting Change Management Communication Mgmt Closing Evaluation Maintenance Turn-over r October November December Janua 10/1 10/29 11/5 11/26 12/3 12/10 12/31 9/10 9/17 9/24 10/8 10/15 10/22 11/12 11/19 12/17 12/24 9/18 9/27 Terminology - This is a schedule or Gantt chart, not a WBS, not the project plan 6. Establish and maintain plans Establish and maintain a complete set of plans for providing the products and services throughout the project life cycle. Description Establishing and maintaining a complete set of plans that define the project, management of the project, and interaction with internal and external organizations is critical to project success. The project plans are policy-driven, documented descriptions of all theresources, management, and technical activities, supporting and infrastructure activities, responsibilities and schedules needed to meet the project s product, service, and organizational objectives. They include commitment and coordination among project staff and with other affected individuals and groups. Initial plans and updates are provided with the timeliness needed to meet project and customer objectives. 20

Provisions for verification of work products, services, process compliance, and corrective actions are included. Plans are updated and maintained in concert with the need for corrective actions as determined via the monitor and control practices. Supporting plans are needed for a broad range of support functions that are necessary for successful delivery of products and services to the customer. These include definition of the structure of authority and responsibility; acquisition of materials, goods, and enabling services (e.g., plans for solicitation, supplier selection, acceptance, contract administration and contract closure); identification and management of project information (including its security, archival, and availability to project staff), provision for development facilities and tools; and definition of project quality activities. Project support plans should be integrated by defining their interfaces and work product dependencies. Planning for infrastructure and support includes planning the activities to develop these supporting plans. Typical Work Products project management plan updates to plans criteria for plan revisions project memoranda (for minor plan changes) plan content requirements project resources risks project organization and assignments project schedule selected systems engineering process for the project subordinate supporting plans o configuration management and information management o quality management o training plans (project-unique) o risk management o security and safety o acquisition of products and services, reuse and COTS o budgeting/funding increments o acquisition of skill and knowledge o facilities and support environment (tools, communication equipment, computers) o product and service evaluations o monitoring, tracking, and review o on-going process improvement Notes Planning of the technical activities for the full life cycle is identified in the project plans. Engineering activities should be integrated into technical planning for the entire project. These activities include the planning of engineering support facilities and tools. 21

Technical management plans typically include: plans for developing the products and services plans for interacting with other organizations (e.g., subcontractors) performing the technical effort Plans should include key technical parameters that can be traced over the life of the project and that will serve as in-progress indicators for meeting the technical objectives. Key technical parameters can be identified through interaction with the customer, customer requirements, market research, prototypes, identified risks, or historical experience on similar projects. Each technical parameter to be tracked should have a threshold or tolerance beyond which some corrective action would be expected. Key technical parameters should have pre-planned assessments scheduled at useful points in the project schedule. Decisions will need to be made as to whether to include infrastructure and support planning in the project plan or in subordinate plans, based on the size and complexity of the project. Acknowledged experts, other project plans, organization policies and procedures, and lessons learned are sources for infrastructure and support planning. The responsibility for project-unique skill and knowledge is shared by project management and organizational training functions. Project management is responsible for identifying project skill and knowledge needs, individual training plans for project staff, coordination of training with the organizational training function, and coordination of the acquisition of external expertise with Contracts Management. Additional Practice Guidance Involve appropriate stakeholders in developing project plans. Establish methods for rapid amendments to plans (e.g., between plan updates). Establish methods for providing operation detail for plans, such as project directives. Include performance thresholds for corrective actions. Provide a mechanism to trigger plan updates when requirements change. Base the need for infrastructure and support plans on project size and complexity. Identify the infrastructure and support plan stakeholders. Coordinate and integrate the various infrastructure and support plans. * Gain Agreement on the Project Plan The project plan formally captures and documents agreements among customers, stakeholders and project participants. Secure an informed agreement up front, and maintain this agreement throughout the project life. This will ensure that the project meets expected results. This will also help align the project with the organization s business plans and supporting plans. Over time, manage the project scope carefully, since there will be a tendency for different areas of the project to acquire their own divergent momentum. 22

7. Establish Commitment Establish and maintain commitment of affected groups and individuals to project objectives and plans, and commitment of resources as identified in the plan. Description This practice provides for negotiation and obtaining commitment of project staff and of the affected groups and individuals that interface with the project. Commitment of individuals and groups is based a common understanding of the project objectives (shared vision) and the activities and resources needed to achieve the objectives. Establishing commitment includes negotiating project resources, scope, and requirements with management and customers in order to secure the commitment of resources identified in the plan. Commitment is maintained throughout the project duration. Assign requirements and responsibilities to individuals and teams. Obtain commitment from project individuals and teams and from external entities to their assigned requirements, responsibilities and resources. Commitment of individuals and groups is based a common understanding of the project objectives (shared vision) and the activities and resources needed to achieve the objectives. Establishing commitment includes negotiating project resources, scope and requirements with management and customers in order to secure the commitment of resources identified in the plan. Commitment is maintained throughout the project duration. The objective of project plan reviews is to ensure a bottom-up, common understanding of the process, resources, schedule, and information requirements by affected groups and individuals (stakeholders) throughout the project. Inputs on the project plan are solicited from all affected organizational elements and project staff. Whenever possible, these inputs are incorporated to build team ownership of the plans. If an input is rejected or modified, feedback is provided to the originator. Interim and completed project plans are distributed for review. A commitment to the project plans is obtained from all groups comprising the project team. Project interfaces include any interface with organizations and individuals that are necessary to successful project execution, whether they are inside or outside the project group. Types of interaction include information exchange, tasking, and deliveries. Methods and processes (including controls) for interaction are established as appropriate for the parties that are interacting. 23

Typical Work Products documented commitment from individuals, teams, organizational elements, suppliers and customers committed resources allocated funds defined processes for project interfaces interface issues between disciplines/groups memoranda of understanding risks project plan inputs project plan comments project plan issues and resolutions Notes Affected groups and individuals typically include: software engineering hardware engineering manufacturing management customers users partners subcontractors Establishing the commitment of individuals to their assigned responsibilities requires that the individual have a full understanding of the required tasks and a justifiable confidence that the task(s) can be performed with the assigned resources. Commitments lacking such understanding and confidence pose a risk to the project. In general achieving individual commitment requires a negotiation between project management and the individual. Negotiation may result in identifying new approaches to performing tasks, new tools, additional training, requirement changes, or changes in budget or schedule. An example of achieving the commitment of groups to plans involves structured reviews. Identify questions that each group should answer as part of their review for commitment. The questions may be different for different groups. Communicate to the groups how the review will be conducted. Provide the technical management plans to the groups and meet with them at a pre-arranged time to discuss their comments. Produce a list of issues from the reviewers' comments and work on each issue until it is resolved. 24

Additional Practice Guidance 1. Identify the project plan stakeholders and affected groups and organizations. 2. Solicit plan inputs and review comments. 3. Negotiate commitment and responsibility with project staff. 4. Reconcile available resources with the scope of work. * The Lead Manager or MPM Master Project Manager will have mastered these qualities. 1. Drive. 2. Ability to Build Consensus. 3. Ability to Take Risks. 4. Ability to Communicate. 5. Experience.. 6. Technical Knowledge. 7. Sense of the Big Picture. 8. Organize to meet project objectives. Identify individuals or teams that will be assigned the resources and responsibilities for meeting project objectives. Description Establish a project organizational structure appropriate to the project activities and work products. Establish and use integrated teams for groups of activities or work products that are interdependent or that would benefit from the characteristics of integrated teams. Establish an appropriate number and size of teams based on consideration of project characteristics, work product dependencies and an efficient balance between inter- and intra-team coordination. Define the scope of work for individuals and teams and confirm that the number of teams and work scope is viable through a preliminary assignment of requirements and responsibilities and analysis of workloads and overall work coverage. Identify stakeholders appropriate for participation in project activities, and maintain and communicate stakeholder lists. Consider the project activities that would benefit from stakeholder participation and identify stakeholders according to their relevance to the activities. 25

Typical Work Products project organizational structure integrated team identifications integrated team membership inter-team coordination procedures team charters team and individual objectives, assignments, and resources lists of stakeholders by activity stakeholder contact information stakeholder availability and constraints stakeholder information access mechanisms and procedures review and meeting distribution lists stakeholder inputs Notes Project organization around integrated teams has been found to work well in project situations with the following characteristics: Project results are organized and managed around work products, as opposed to activities (team focus on work products). The project has technology risks or issues whose resolution would benefit from focused diversity of inputs and team synergy. Work products assigned to teams have a complex and highly interdependent structure that would benefit from the tight coordination provided by teams. Labor and schedule resources are available to support the slightly higher overhead involved in intra-team coordination and decision making. In some cases (typically the inverse of the above) individual assignments may be more effective. (For example, a work product that can be sub-divided into relatively independent parts and handled by highly skilled individuals, where effort and schedule are highly constrained.) The integrated team structure can encompass the whole project with a network of sub-teams, coordination teams, and individuals. The Integrated Teaming process area provides detailed practices on establishing and supporting integrated teams. Candidates for stakeholders include, in addition to project staff, higher levels of management, customers, users, customer experts, law enforcement, and policy-makers. In the FAA context, stakeholder candidates include passengers, pilots, crew, controllers, management, division or departmental staff, site municipal officials, lawmakers, news media, and the general public. Refer to the practices of the Needs process area regarding identification of stakeholders. 26

Additional Practice Guidance Coordinate Teams Involve Appropriate Stakeholders in determining corrective actions. Define Success Up Front - Define project success in terms of specific business objectives. From the customer s point of view, how should different business objectives be prioritized? Use Metrics to Focus On Outcomes - Focus on outcomes rather than outputs. Prioritize the metrics for which project participants will be held responsible. Gain agreement on critical metrics and use them to drive planning and delivery. Integrate Planning Activities Across the Project - Formalize planning processes. Assign roles and responsibilities specifically for planning-related activities. The CEO or other executives can help anchor project plans in the organization s business and planning. Realign Plans Over Time - How will plans need to be modified along the way? Make sure project plans continue to support intended business priorities. If the project encounters significant changes, then the original plans will have to be realigned to ensure desired results. 9. Direct the project Communicate project plans, direction, corrective actions, and status, and coordinate project activities. Description Provide day-to-day direction for the project including distribution of project plans and addenda, authorization to commence work on project activities, direction to suspend or terminate activities, resolution of questions and issues, communication of project status and meetings, coordination among tasks and individuals, and ad-hoc tasking as required. Maintain informal participation and contact with project staff and stakeholders to keep informed on progress, issues, and staff morale. Schedule project activities, such as reviews, with consideration of stakeholder commitments and constraints. Provide stakeholders with appropriate access to project information. Obtain inputs from stakeholders on requirements, issues, and work product and schedule dependencies. Provide for communication and coordination among individuals and teams. 27

Typical Work Products written and verbal tasking project memoranda work authorizations stop work orders project status project meetings question and issue resolution Notes There are many resources available on project management including training courses, publications, best practices, tools, and techniques. Successful project managers use a variety of tools and techniques for effective communication and coordination with project staff. One highly touted method is called "management by wandering around" or MBA. Additional Practice Guidance Maintain an open door policy that encourages project staff to bring questions, issues and improvement opportunities to project management. 10. Monitor project performance Monitor and track project activities and results against plans. Description Monitor and track management and technical progress through all phases of the project. Include tracking of planning parameters, technical performance, budget, schedule, and resources against established project plans. Progress is determined by measuring the performance and the variance between planned performance and actual performance at predetermined levels of detail. Monitor and track performance measures established for the project. Monitoring provides visibility of progress, and insight into the risks of the project. Visibility encourages timely corrective action when performance deviates from plans. When issues or concerns arise performance parameters are tracked at finer resolution. Project monitoring includes establishing and using methods to collect and manage issues. Typical Work Products cost and schedule performance cost and schedule variance defect densities and trends technical performance measures technical parameter trend data resource usage data change requests for the project management plan 28

Notes Monitoring management performance includes measuring the variance to plan of cost and schedule for designated management activities (e.g., reviews, plan updates). Monitoring technical performance involves measuring the cost and schedule variances of technical effort, as well as selected technical parameters (e.g., number of transactions supported, sensor accuracy, and product or service availability) and defects (e.g., errors per thousand lines of code, number of evaluation non-conformities, volume of rework, etc.). When variances are identified that approach or exceed the pre-determined levels, a finer granularity of monitoring may be needed to track specific performance factors. Earned value is a typical method used to determine cost and schedule variance. Earned value is used with other indicators to provide more accurate insight into issues and problem areas. Additional Practice Guidance Establish guidelines and thresholds for reporting variances. Evaluate and adjust the frequency of measurements in order to detect variances before they become significant risks to project success. Correlate and document actual performance and planning parameters for use in re-planning and for future projects (historical data). Document lessons learned for use in ongoing project management and planning and managing future projects. 11. Review and analyze project performance Conduct formal and informal reviews of project management and technical performance and analyze variance from plans. Description Performance measurement data obtained from monitoring and tracking activities is reviewed and analyzed to identify risks, analyze variances to determine if corrective action is needed, and to determine if measurement (tracking) frequency and variance reporting thresholds need to be revised. The need for corrective action is based on comparing variances to pre-determined action thresholds. Performance data, variances, exceeded action thresholds, and other issues are elevated to appropriate levels of management for determination of corrective actions. Progress in meeting technical objectives is monitored at appropriate levels ranging from peer reviews to formal design reviews. Risk management results, including risk assessments and decisions on mitigation alternatives, are reviewed to influence or validate risk management strategy. Project performance is reviewed with customers to assure agreements are being satisfied. 29

Typical Work Products program management reviews and agendas minutes/slides lists of performance issues needing corrective action risks discovered in perform review and analysis "top ten issues" formal reviews (system requirements, design, and subsequent reviews, preliminary and critical design reviews, and test readiness reviews) management reviews quality assurance reviews and audits (functional configuration audit, preliminary configuration audit, process audits, product audits) technical reviews status reports action item list Notes Corrective action thresholds are established and documented in project plans. Thresholds may need to be revised as the project progresses, due to risks or other factors. Variances that are close to action thresholds or those that can be extrapolated to cross action thresholds (e.g., through trend analysis) in the future are candidates for finer resolution tracking. Reviews are scheduled with agendas provided. Artifacts of the meeting are kept and action items recorded and tracked to closure. Reviews include all affected groups and individuals including, e.g., senior management, project management, task management, system engineering (hardware and software), test, maintenance, operations, quality assurance, end user, customer, subcontractors, external system representatives, and the business office. Examples of reviewing performance include: Meetings of the stakeholders of the project to present analyses of performance and suggested corrective actions Status reports which document a particular issue or occurrence (technical meeting) Analysis of project management indicators Review of contractor prepared management reports 30

Additional Practice Guidance Maintain records of variances, defects, and issues and evaluate for trends. Extrapolate variances as a method of identifying risks and potential impacts to budget and schedules. Establish an environment that encourages early reporting of problems (before they become larger problems). Use the results of early validation to support tracking and oversight of project performance. 12. Take corrective action Take corrective actions to address problems. Description When problems or potential problems are identified, corrective actions are taken commensurate with the nature and magnitude of the problem. These corrective actions may take the form, for example, of reallocating resources, changing methods and procedures, or increasing adherence to the existing plans. When the complexity of the problem warrants, formal decision analysis may be needed to identify a number of alternative corrective actions and selection of the appropriate alternative based on coordinated and approved criteria. Project plans are revised to reflect the corrective actions. Corrective actions are tracked to closure. Typical Work Products resource reallocations changes to methods and procedures change orders action items requirement changes schedule changes changes in project scope project plan revisions decision to terminate the project Notes This base practice covers whatever actions are needed to prevent anticipated problems or to correct the problems discovered. Corrective actions may involve reassignment of personnel, project re-organization, acquisition of new tools or skills, and budget and schedule adjustments. The possible actions taken under this base practice are varied and numerous. Lessons learned should be reviewed to identify types of corrective actions that are usually successful and those that are not. For example, adding personnel to a late project is usually not an effective corrective action. 31

Additional Practice Guidance Involve appropriate stakeholders in determining corrective actions. Evaluate risks associated with alternative corrective actions. Define new metrics, data gathering, and analysis where information provided fails to effectively detect non-compliance, faults, and adverse trends. Organizational Management Organizational Management is responsible for the identification of the need and opportunity for a project, assessment of project risk, and the approval of the project s feasibility and resources. They are also responsible for establishing the strategic plans and for validating that projects are consistent with customer and organizational requirements. Management provides close oversight for high risk or high cost projects. MANAGEMENT ROLES AND RESPONSIBILITIES General Initiating Planning Executing Monitoring/Controlling Closing Provide leadership and resources to establish and improve project management Ensure that sufficient resources are available to conduct projects Review and approve commitments to external entities (e.g., customers, vendors) Ensure staff is properly trained in project management techniques and principles Select Project Manager and assist in Project Team staffing Review, validate and approve project charter Authorize and provide funding Verify that project goals and objectives are defined Review and approve Project Management Plan, cost, risk and establish management reserves Provide management oversight as predicated by review of the project risk analysis, risk response planning and Project Management Plan Enable project staff availability Regularly conduct executive manageme nt reviews and provide oversight Review project status and corrective action plans (if required) Review and approve changes affecting scope, timing, cost, and/or quality, as required Validate project completion (goals & objectives) Verify customer and sponsor acceptance Review and close project accounting/financial files Review project lessons learned and post project reports for continuous improvement action 32

Project Sponsor / Business Sponsor The Project Sponsor is usually a member of the management team (of the customer) who will be the recipient of the project s end result (the product). The Project Sponsor is typically the head of a program area. This individual makes the business argument for the project to exist, controls the overall funding of the project and defines the acceptance criteria of the product. SPONSOR ROLES AND RESPONSIBILITIES General Initiating Planning Executing Monitoring/Controlling Closing Articulate project and/or customer requirements Validate that project requirements are met Provide the necessary funding and resources as appropriate Champion the project to provide exposure and buy-in Communicate the sponsor s views on project progress and success factors to the Project Team and other stakeholders Define project goals, objectives and success criteria Provide the strategic goals and objectives of the recipient organization and guidance to the Project Team to identify the relevance and value of the project Obtain or provide funding for the project Review and approve the Project Management Plan and management approach Participate in planning sessions Attend executive requirement reviews Resolve escalated project requirements issues, remove barriers and obstacles to the project Provide written agreement to project requirements and qualifying criteria Attend and participate as needed at Project Status Reviews and steering meetings Attend change control meetings and review and approve changes in scope, timing, quality and/or cost as impacted Provide representation or input to lessons learned reviews Sign off on project completion 33

Project Manager Oversight List The Project Manager has overall project responsibility. In order to achieve success, the Project Manager should work closely with the Sponsor with respect to staffing requirements and funding availability. The Project Manager is responsible for completing the project on time, within budget, and meeting the quality criteria and requirements. The Project Manager should be assigned as early as possible in the life cycle of the project in order to establish project ownership and management responsibility as well as to begin the development of the project requirements from the ground up. PROJECT MANAGER ROLES AND RESPONSIBILITIES General Initiating Planning Executing Monitoring/Controlling Closing Comprehend and implement organizational project policies and procedures Maintain project staff technical proficiency and productivity, and provide training where required Establish and maintain project quality Identify, purchase and acquire project infrastructure needs Identify and secure Project Team resources Serve as focal point for project communications Ensure that IT security C&A requirements are met Develop project concept document Define sponsor and organizations needs Develop Project Charter and obtain approval Identify and document project constraints Identify and document project assumptions Document requirements Review customer requirements for feasibility and available resources Develop Project Plan, including Project Charter, Scope Statement, constraints, assumptions, WBS defining project deliverables, cost estimates and project budget, major milestones, schedule, resource requirements, acquisition/procurement plans, risk analysis and response plans, Project Team structure and communications plan. Also included will be the deliverables acceptance criteria (quality metrics) and the acceptance process. Develop the supporting plans such as scope, cost, risk, schedule, quality, resource, security deliverables, procurement and change management plans Obtain stakeholder approval and acceptance of the Project Management Plan Obtain organizational commitment and support for completion of projects assignments, timing and quality Establish baselines Manage and monitor dayto-day activity and provide direction to team members and supporting organizations Manage to and monitor quality targets and goals (both project and product) Manage and monitor risk response strategies Disseminate project information and maintain communication Develop and update system security plan and other security deliverables Manage, or support, purchases and acquisitions process and contract administration requirements Develop and distribute project performance reports. Regularly review project status, evaluating performance criteria (scope, cost, schedule & quality) Develop and manage corrective action plans Evaluate project performance and initiate change requests as required (scope, cost, schedule or quality) Participate in change control board to review and approve product/project changes Review project risks and establish risk response plans Adjust Project Management Planning, as required, to include approved changes in scope, timing, cost or quality after obtaining customer approval Obtain customer and management approval and acceptance of completed product Complete contract closure process Close out open action items Develop postimplementati on report Conduct lessons learned session and develop recommenda tions for continuous improvement Close out any financial accounts or charge codes Archive all project data Recognize Project Team and celebrate success 34

Decision Sciences, Tools, Methods, and Computations Gantt Charts and Graphs Gantt was credited with designing the first PM bar style charts. i.e. more or less a spread sheet on a time line. Duties Assigned 35